Creditors Seek Temporary Liquidation of UAE’s IFFCO Group Amid Restructuring Challenges

UAE-based food group IFFCO is facing temporary liquidation proceedings following legal moves by lenders as efforts to restructure around US$2 billion in debt remain under pressure.

According to the report, creditors including banks in Dubai and Abu Dhabi, together with HSBC, are seeking to appoint FTI Consulting as provisional liquidator. The request was filed before courts in Singapore and the Isle of Man, where key legal entities of the group are located.

The move is intended to protect company assets and improve creditors’ chances of recovering funds while the company’s future is assessed.

IFFCO operates a wide portfolio of food brands and products, including London Dairy, olive oil, biscuits, poultry and animal feed. The group employs about 12,000 people and operates in 50 countries.

The company had previously attempted to address its financial challenges with the support of restructuring advisers and governance changes. However, debt pressure and supply chain challenges continued to affect the group.

Relevant parties did not provide official comments, according to the report.

Source: Bloomberg